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  • Writer's pictureDr. P.K. Shrivastava

INDIA IS NO 1 IN MILK PRODUCTION IN WORLD WHY OUR COST OF MILK PRODUCTION IS HIGH....BY DR GUPTA

Dear Dr Neeraj Gupta, thanks for posting your many concerns in one post at Linked-in on 11.10.21.


Your Quote: Couldn't understand 🤔 when WE're sustaining No.1 rank in Global Milk Production over 10 years, why Our Cost of Milk production still going Higher –


Our comments: (1) MARKET INFLATION (COST OF ALL COMMODITIES SOARING HIGH)


(2) LESS EFFECTIVE SUPPORT OF GOVT TOWARDS FEEDING OF ANIMALS (FEED OR FODDER SUBSIDIES), AS FEEDING MAKES ABOUT 70% OF RECURRING COST FOR AN ANIMAL FARM BUSINESS.


Your Quote: Low Input Low Output & running inefficiencies:


Our comments: (1) THE BUSINESS MODEL IS INHERITED, STILL EXISTING AND WILL GO FOR MANY MORE YEARS FROM NOW. IT HAS STARTED MELTING AT VERY SLOW RATE - TOWARDS INVESTMENT COMING FOR TECHNICALLY MANAGED DAIRY ANIMAL FARMS (LARGE SELF SUSTAINING ANIMAL FARMS-WHERE RECORD BASED GERMPLASM IS AVAILABLE).


(2) MINDSET OF POLICY MAKERS NEED TO CHANGE THAT DAIRY IS AN AGRICULTURAL RESIDUE DEPENDENT BUSINESS.


Your Quote: I believe, Milk & Product Value which Indian consumer is paying out of need is not worth for as the product health standards bench-marking is not meeting global standards and hence not being valued, with insignificant share (around 1 %) in exports:


Our comments: ASSURING QUALITY OF A FOOD PRODUCT NEEDS INVESTMENT. TILL DATE (75 YEARS OF BEGINNING OF WHITE REVOLUTION), WE COULD NOT PROVIDE HANDY, AFFORDABLE TESTING TOOL TO ARREST ADULTERATION AT SOURCE. WHEN WESTERN WORLD TALKS ABOUT ANTIBIOTICS, PROTEIN%, ORGANIC & INORGANIC CHEMICALS RESIDUES IN MILK, WE STILL (90% TESTING BY ORGANIZED DAIRY HOUSES) DEPEND ON TESTING OF FAT & SNF ONLY? NOT TO MENTION ABOUT THE QUALITIES OF UNORGANIZED MILK COMING TO THE MARKET.


(2) PROBABLY GOVT BELIEVES BY ENHANCING THE PROCESSING CAPACITIES OF (MAINLY COOPS), THE QUALITY OF MILK N ITS PRODUCTS WOULD BE ADDRESSES- WHICH IS A WRONG THINKING. THE SUPPORT COOPS GOT FROM GOVT, PRIVATE DID NOT GET, HOWEVER, PRIVATES ARE SURPASSING COOPS' PROCESSING PERCENTAGES. THE AHIDF SUPPORT SHOULD BE AVAILABLE MORE TO PRIVATE COMPARED TO COOP, WHICH IS GOING THE OTHER WAY ROUND.


(3) SUPPORTING COOPS BY GOVT HAS SOME HIDDEN AGENDA ALSO, LIKE PAYING RS 4-5-6 PER LITRE SUPPORT PRICE TO PRODUCERS OF COOPS IN MANY STATES. WHY THIS SUPPORT IS AVAILABLE ONLY TO COOPS, NOT TO OTHER FARMERS, WHO ARE POURING MILK TO PRIVATE? MAKE LEVEL FIELD FOR PRIVATE & COOP AND SEE THE CHANGE.


Your Quote: (1) The intense demand within Indian market and traditional bondage is driving the industrial growth in the country. (2) Indian Milk Industry trend at present seems to be going worse than Oil Industry where we're dependent on Imports and still price coming down at times, but here no history of Consumer Milk price coming down irrespective of the seasonality built in, the commodity production. (3) Keep Taxing consumer Only Or prove to be Taxing to Both Producer n Consumer Or bring savings on both sides.


Our comments: IN PAST 75 YEARS, OF GOVT SUPPORT , WE HAVE NOT BEEN ABLE TO ESTABLISH “A BODY TO REGULATE THE DAIRY INDUSTRY (ADDRESS THE ISSUES) LIKE MANY OTHER INDUSTRIES HAVE. ITS ONLY COOP SOCIETY REGISTRAR, OR COMPANY ACT'S REGISTRAR- WHO HARDLY UNDERSTAND THE DAIRY BUSINESS.


ALSO PL DON’T CONFUSE WITH FSSAI, IT IS BODY FOR FOOD, NOT ONLY FOR DAIRY (MANY OF ITS EMPLOYEES DO NOT KNOW BASICS OF DAIRY BUSINESS & QUALITIES). IN FACT, THEY HAVE LARGE NUMBER OF COMMODITIES TO DEAL WITH.


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The writer of this reply to Mr Neeraj Gupta's Linked in post of date 11.10.21, is "Dairy Business Guru", Dr PK Shrivastava, Independent consultant and subject matter specialist, Bangalore. email: pkshrivastava54@gmail.com


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